ATI Inc. Common Stock (ATI)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

In the spirit of Graham and Buffett, I start with the business and the price. ATI produces specialty materials and complex components, with two segments, High Performance Materials & Components and Advanced Alloys & Solutions. The provided figures do not let me measure a durable competitive moat directly; high FairStock ROE of 25.36% is offset by a modest ROCE of 8.79%, which suggests capital intensity and limited excess returns. The recent record is good: in fiscal Q2 2026, the quarter ended 2026-06-28, revenue was $1.3B, net income $151.0M, and diluted EPS $1.09; a year earlier, in fiscal Q2 2025, the quarter ended 2025-06-29, revenue was $1.1B, net income $100.7M, and diluted EPS $0.70. For FY2025, the period ended 2025-12-28, revenue was $4.6B, net income $404.3M, and diluted EPS $2.85. FairStock calls it a FAST GROWER because profit grew 21.7% a year over four years and revenue 13.1%. Returns are strong on equity—FairStock ROE 25.36%—but ROCE of 8.79% is modest, and debt/equity is 1.10. Free cash flow is positive at $526.3M, yet FCF yield is only 2.0%. The balance sheet looks solid by Altman Z-Score 5.06, but Piotroski is 5/9. Valuation is the rub. At the 2026-10-13 close of $189.81, FairStock P/E is 55.66, P/B 13.77, EV/EBITDA 30.92, and the Graham Number is $32.52—a margin of safety of -483.67%. PEG 1.11 isn't crazy if growth persists, but I see little margin of safety. A wonderful business can be a poor investment at the wrong price.

In plain English: ATI makes specialized metal alloys and complex parts for industrial uses worldwide. The business looks profitable and is growing: in the quarter ended 2026-06-28, sales, profit, and per-share earnings were all higher than the same quarter a year earlier. But at the 2026-10-13 closing price of $189.81, the stock looks expensive compared with the company's earnings, accounting value, and cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer